OFFSHORE OUTSOURCING STRATEGY FROM INTERNATIONALIZATION PROCESS PERSPECTIVE

摘要

Traditionally, firms have been adopting offshore outsourcing as the means of operational decision to reduce operational costs. Yet, as firms? offshoring activity moves from simple manufacturing jobs to more complicated service and knowledge works, they consider offshoring as a strategic initiative to enhance the overall competitive advantage of the firm. Offshoring activities also can be regarded as supply-side internationalization process in the firm as opposed to demand-side internationalization process. We propose a conceptual model building upon the previous literature---Transaction Cost Theory (TCT), Strategic Sourcing, and Internationalization Process. In this model, three Offshore Outsourcing Strategies (OOS) are identified and the key determinants of three strategic choices are illustrated. We propose the hypothesized relationships between determinants and OOS and present the managerial and theoretical implications as well.